13 February 2014
Kindly guide me with an example as to how to calculate interest free loans provided by the employer to the employee. What should be the rate of interest charged for the same, and how is it treated in calculating the TDS of employee for the month of March'14
In your case, since it is interest free. Perquisite would be calculated directly on the SBI lending rate existing as on 1st April of the previous year.
One important point to be noted, in case of any repayments, calculation of interest has to be done on a monthly basis. Ie the balance of loan outstanding as on the last day of a particular month should be considered and then calculations should be done... hope that resolves your query....
17 February 2014
If the loan is for medical purpose for the purpose other than the medical treatments mention in Rule 3A, then what rate of interest to be charged.
CAclubindia
